Our website uses cookies to improve your user experience. If you continue browsing, we assume that you consent to our use of cookies. More information can be found in our Cookies Policy and Privacy
Policy.

Is there more to Cheil than Samsung?

Korean agency Cheil has appointed former Leo Burnett London chief Bruce Haines to realise its international ambitions. The industry is split over whether he can pull it off.

Cheil is looking to shake off its image as a one-client agency and has tasked Haines with building its presence around the world by buying or partnering with agencies in key markets, including London and New York. Haines, who starts on April 16 and will be based in Seoul, has been appointed to the new role of global chief operating officer at Cheil, as exclusively revealed by marketingweek.co.uk last week (MW.co.uk, February 20).

The agency was born out of Korean electronics giant Samsung and has 35 offices around the world. Although still part of the Samsung Group, the company’s stake in the agency is now just 15% with the rest being floated on the stock exchange. Cheil is the biggest agency in Korea, twice the size of its nearest competitor by billings in its home market, but the agency’s only other global business is tyre company Hankook.

The agency, which is run in Europe by president Terry Son and vice-president Saul Pearce, is ranked as the 16th biggest in the world – largely thanks to Samsung – and aims to break into the top ten by 2010.

Competitive ambition

Pearce says: “Our ambition in the longer term is to build a competitive full-service agency and to work with a number of different clients. We have very serious plans afoot and Bruce is integral to setting those plans in motion.”

Cheil is Samsung’s local and regional agency, while Leo Burnett, Haines’ former agency, handles its global account. CHI & Partners is also on the company’s roster, having created several global campaigns for Samsung. But a source close to Cheil suggests there is no reason the agency cannot handle the global account itself one day if it strengthens its international offering.

Cheil is hoping Haines will be a “magnet” for creative and account handling talent, with Pearce saying that his appointment is a way of “fast-tracking our growth”.

The source adds: “Hiring a heavy hitter could make all the difference. They already have the infrastructure in place and a profitable way of working – it’s not like he [Haines] is starting from scratch. If he’s going to win large multinational non-Korean clients he needs to have something – or someone – to attract them.”

Haines says the agency will be looking to win local business in Europe and the US, as well as global accounts, to help tempt talent to Cheil.

No dynamic reputation

Another senior industry source points out that Leo Burnett was not seen as a dynamic agency during Haines’ tenure. He left the agency last year after clashes over its structure (MW.co.uk October 23, 2007). “Bruce is a very good brand person but he is not an operational person so it’s a strange appointment,” adds the source. “Cheil doesn’t have a product – I don’t know what it does.”

However, a source who has worked with Cheil in the past calls the agency “incredibly beneficial” because of its knowledge of the Korean market: “You can either fight it or you can go with it and you’re mad if you don’t go with it.”

Haines says that Cheil’s Korean management is determined not to repeat the mistakes of Japanese agencies launching in Western markets. “They didn’t look at Western markets through Western eyes,” he adds. “The Koreans recognise that they need people who have the experience of working in the West.”

Another source close to Cheil points out that the agency is “phenomenally profitable”, suggesting Haines will have deep pockets when it comes to acquisitions. It seems the agencies and personnel that Haines chooses to spend his money on will determine how successful Cheil can be on the international stage.

Recommended

Mountain Leap is an Alpine Corporate Events company with a difference. With offices in London and Chamonix, Mountain Leap specialises in corporate hospitality, ski weekends, team building and inspirational events across the Alps.

You should read this

Poundland, the discount retailer, is seeking its first advertising agency as it looks to expand following soaring sales last year. It is understood that the move is being spearheaded by chief executive James McCarthy, who joined the company from Sainsbury’s in September 2006. However, it is thought that the pitch itself will be overseen by […]

Speed and agility are crucial to creating content for today’s digital platforms. Marketing Week and Creative Review, in partnership with Shutterstock, ask marketers and creatives how to ensure their approach is fit for purpose.

Story of my CV: From the BBC to Boots via DFS, Helen Normoyle has experience of many well-known British brands. But even with such impressive marketing pedigree, she is still embracing change and seeking new challenges which put her out of her comfort zone.

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Already a member?

Sign in

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Type anything and hit “enter”

Sign in

Not registered yet?

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.